As the party leaves Carroc Azuul, they see the smoke of many campfires burning to the south, towards the swamps. This causes some curiosity, but they have saffron to sell in Duragzhar, and so head that way. When they reach Duragzhar, the party splits up to gain information. They find out that one of the lizardfolk clans, the Iron Scales, has been expanding their territory and their numbers, putting to the spear any lizardfolk who would not join them. Many lizardfolk are fleeing the swamps. Refugees crowd into the slums of Duragzhar.
Varrokh wants to lay low, and knowing the swamp well, decides to do so there. The party sees this as a profit making opportunity, and buys metal weapons to sell to the lizardfolk.
When the party arrives at Varrokh's smuggler shack, they realize their horses won't make it through the swamps to Keth. They leave Varrokh behind, with a sending stone, to guard the horses, then continue on to Keth. They are ambushed by a group of Iron Scales, but kill them all.
When they arrive, they seek out Slyssk in order to set up a deal to sell their metal weapons. He says it will take time to find a buyer, and to come back the next day. The party stays in a communal hut that night.
The next day, Slyssk has set up a buyer. The buyer is Harka, chieftain of the Iron Scale clan. Among his retinue is a female shaman. While some in the party are uncomfortable selling to these aggressors, a deal is made, and the party leaves with many pearls.
The party splits up to investigate the situation in Keth. Sidium stays with Slyssk in order to start learning to speak Draconic, Anathra goes to talk to the local druid circle, and Onan invisibly scouts out the Iron Scale camp within Keth.
The local druids are very concerned about the aggression of the Iron Scales. It upsets the balance of their people. The Iron Scale shaman is a stranger to them, and will not parley with them.
The Iron Scale camp is already busy affixing metal spear tips to their hafts. Onan finds the tent of the chieftain and overhears the shaman talking about "The Hatchling" being almost ready. Onan sneaks into the tent, but is unable to find any evidence of what The Hatchling might be.
After exchanging the information they learned, the party sleeps the night again in Keth. That night, Onan is wracked by unholy nightmares. Anathra notices a hideous woman straddling Onan in his sleep. When she sees she's been caught, she disappears. When Anathra describes what he's seen, Onan's mind goes back to the death of his grandmother. The day she died, Onan saw a similar creature disappear from her bedside. Onan becomes convinced that this is a chance for revenge.